Homework Answers
| Date | Account title | Debit | credit |
| October1 2020 | Note receivable | 20000 | |
| Accounts receivable | 20000 | ||
| December 31 2020 | Interest receivable | 600 | |
| Interest revenue | 600 | ||
| [Being interest earned for 3 months :20000*12%*3/12 = 600] (1Oct-31Dec) | |||
| February 1 2021 | Cash | 20800 | |
| Interest revenue | 200 | ||
| Interest receivable | 600 | ||
| Note receivable | 20000 |
**Total interest over the period = 20000*12%*4/12 = 800 out of these 600 was accrued last year in 2020 and remaining in 2021 (800-600) = 200
Add Answer to:
Part 3 of 3 Lynbrook Inc. sells a variety of merchandise to retail stores on account,...
Treat the following parts as three independent situations. Part 1 of 3 Lynbrook Automotive, Inc. applies...
Treat the following parts as three independent situations. Part 1 of 3 Lynbrook Automotive, Inc. applies the allowance method to record transactions relating to their accounts receivables. On December 31, 2019, the company had a debit balance of $700,000 in Accounts Receivable and a credit balance of $20,000 in their Allowance for Doubtful Accounts. During 2020, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts. These transactions are summarized as follows: a) Provided...
Part 2 of 3 During the fiscal year ended December 31, 2020, Lynbrook Inc. had credit...
Part 2 of 3 During the fiscal year ended December 31, 2020, Lynbrook Inc. had credit sales of $4,780,000. On December 31, 2020, Lynbrook had an unadjusted debit balance in their Allowance for Doubtful Accounts of $15,275. Your accounting department prepared an aging schedule of Lynbrook's December 31, 2020, accounts receivable account. Based on past experience, Lynbrook estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2020 Age of...
Part 1 As the controller of Lynbrook, Inc. you are responsible for preparing the monthly bank...
Part 1 As the controller of Lynbrook, Inc. you are responsible for preparing the monthly bank reconciliation. Using the information below, prepare the bank reconciliation for January 31, 2020. 1. The ledger account for Cash showed a balance at January 31 of $127,500. 2. The January bank statement showed a closing balance of $108.750. 3. The cash received on January 31 amounted to $28,000. It was left at the bank in the night depository chute after banking hours on January...
Problem 2(20 points) On September 1, 2018, Smit Co. received a 12%, six-month note receivable in...
Problem 2(20 points) On September 1, 2018, Smit Co. received a 12%, six-month note receivable in settlement of accounts receivable of $320,000. Smit Co. insists that any customer who fails to pay an account receivable when due must replace their unpaid account receivable with an interest-bearing note receivable. Assume the company makes adjusting entries for accrued interest revenue once a year on December 31. Journalize the following events on the books of Smit Co.: 1. Record the receipt of the...
The following selected transactions were recorded by Lynbrook Inc. during 2019. Lynbrook has a policy of...
The following selected transactions were recorded by Lynbrook
Inc. during 2019. Lynbrook has a policy of recording transactions
directly to Balance Sheet accounts under most circumstances.
However, at times the company makes exceptions to this policy. Any
exceptions to this policy are clearly identified in the
transactions below.
On December 31, 2019, the following additional information is
available:
Property taxes for 2019 are due to be paid by April 1, 2020. The
company has not paid or recorded its $2,900...
As part of your role as the controller for Lynbrook Security, Inc., you are asked to...
As part of your role as the controller for Lynbrook Security, Inc., you are asked to prepare a monthly bank reconciliation. The information you need to prepare the September 30, 2020 bank reconciliation for Lynbrook is listed below: 1. The ledger account for Cash showed a balance at September 30 of $7,820. 2. The September bank statement showed a closing balance of $6,710. 3. The cash received on September 30 amounted to $7,605. It was left at the bank in...
Part 1 As the controller of Lynbrook, Inc. you are responsible for preparing the monthly bank...
Part 1 As the controller of Lynbrook, Inc. you are responsible for preparing the monthly bank reconciliation. Using the information below, prepare the bank reconciliation for January 31, 2020. 1. The ledger account for Cash showed a balance at January 31 of $127,500. 2. The January bank statement showed a closing balance of $108,750. 3. The cash received on January 31 amounted to $28,000. It was left at the bank in the night depository chute after banking hours on January...
Treat the following parts as three independent situations. Part 1 of 3 Lynbrook Automotive, Inc. applies...
Treat the following parts as three independent situations. Part 1 of 3 Lynbrook Automotive, Inc. applies the allowance method to record transactions relating to their accounts receivables. On December 31, 2019, the company had a debit balance of $700,000 in Accounts Receivable and a credit balance of $20,000 in their Allowance for Doubtful Accounts. During 2020, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts. These transactions are summarized as follows: a) Provided...
You recently accepted the position of Controller of a newly incorporated company, Lynbrook IT, Inc. Lynbrook...
You recently accepted the position of Controller of a newly incorporated company, Lynbrook IT, Inc. Lynbrook provides IT (information technology) services to small and medium size companies. The owner, Sam Thompson, gave you the following list of transactions that were made during the first month of operations. 1. On March 1, Thompson invested $30,000 cash and $150,000 of equipment in Lynbrook in exchange for common stock. 2. On March 2, Lynbrook paid $6,000 cash for furniture for the shop. 3....
Part 2 of 3 As the recently appointed controller of Lynbrook, you would like to begin...
Part 2 of 3 As the recently appointed controller of Lynbrook, you would like to begin using the aging method to determine the ending balance in the Allowance for Doubtful Accounts. Your accounting staff provided you with the following aging schedule for Lynbrook’s accounts receivable at December 31, 2019: Accounts Receivable Amount Proportion Expected to Default 0-30 days 225,000$ 0.03 31-60 65,000 0.10 61-90 35,000 0.15 Over 91 days 10,000 0.45 335,000$ Required: If the unadjusted balance in allowance for...
Part 2 of 3 During the fiscal year ended December 31, 2020, Lynbrook Inc. had credit sales of $4,780,000. On December 31, 2020, Lynbrook had an unadjusted debit balance in their Allowance for Doubtful Accounts of $15,275. Your accounting department prepared an aging schedule of Lynbrook's December 31, 2020, accounts receivable account. Based on past experience, Lynbrook estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2020 Age of...
Part 1 As the controller of Lynbrook, Inc. you are responsible for preparing the monthly bank reconciliation. Using the information below, prepare the bank reconciliation for January 31, 2020. 1. The ledger account for Cash showed a balance at January 31 of $127,500. 2. The January bank statement showed a closing balance of $108.750. 3. The cash received on January 31 amounted to $28,000. It was left at the bank in the night depository chute after banking hours on January...
Problem 2(20 points) On September 1, 2018, Smit Co. received a 12%, six-month note receivable in settlement of accounts receivable of $320,000. Smit Co. insists that any customer who fails to pay an account receivable when due must replace their unpaid account receivable with an interest-bearing note receivable. Assume the company makes adjusting entries for accrued interest revenue once a year on December 31. Journalize the following events on the books of Smit Co.: 1. Record the receipt of the...
The following selected transactions were recorded by Lynbrook
Inc. during 2019. Lynbrook has a policy of recording transactions
directly to Balance Sheet accounts under most circumstances.
However, at times the company makes exceptions to this policy. Any
exceptions to this policy are clearly identified in the
transactions below.
On December 31, 2019, the following additional information is
available:
Property taxes for 2019 are due to be paid by April 1, 2020. The
company has not paid or recorded its $2,900...
As part of your role as the controller for Lynbrook Security, Inc., you are asked to prepare a monthly bank reconciliation. The information you need to prepare the September 30, 2020 bank reconciliation for Lynbrook is listed below: 1. The ledger account for Cash showed a balance at September 30 of $7,820. 2. The September bank statement showed a closing balance of $6,710. 3. The cash received on September 30 amounted to $7,605. It was left at the bank in...
Treat the following parts as three independent situations. Part 1 of 3 Lynbrook Automotive, Inc. applies the allowance method to record transactions relating to their accounts receivables. On December 31, 2019, the company had a debit balance of $700,000 in Accounts Receivable and a credit balance of $20,000 in their Allowance for Doubtful Accounts. During 2020, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts. These transactions are summarized as follows: a) Provided...
Most questions answered within 3 hours.
-
a fair red die and a fair blue die are rolled. What is the
expected value...
asked 9 minutes ago -
Organizations that interact with medical patients are subject to
HIPAA compliance.
a. Briefly describe, in your...
asked 1 hour ago -
1. A sociologist examines the relationship between the poverty
rate and several socioeconomic factors. For the...
asked 2 hours ago -
Discuss how strategic digital marketing is a much wider
topic than social media marketing.
Describe 1-2...
asked 5 hours ago -
If your samples are concerned with the mean and are dependent,
what kind of distribution should...
asked 7 hours ago -
1. Suppose t hat Xhas t he chi-square distribution on p1∈(0, ∞)
degrees of f reedom...
asked 6 hours ago -
What is the pH of a solution of 1.00L of water with 0.00277
moles of HCl...
asked 6 hours ago -
Consider the following linear program:
Max Z = X1 – 2X2
Subject to – 4X1 +...
asked 7 hours ago -
Provide an example of a good for which the price has fallen in
result of technological...
asked 7 hours ago -
The manufacturer of Riordan Metal claims the average force
required to break a 5 mm diameter...
asked 8 hours ago -
Share any ideas or programs that you would implement to keep
your workforce happy and productive...
asked 7 hours ago -
1. Use Table A (Z-curve), sketch the curve and shade in the area
that answers the...
asked 8 hours ago